The Hindu Business Line : Buoyant paper prices boost TNPL

For the fourth quarter ended March 31, 2006, the company has reported a profit after tax of Rs 34.60 crore on net sales of Rs 209.16 crore. During the same quarter the previous year, the company reported a net profit of Rs 23.83 crore on a net sales turnover of Rs 172.81 crore.

For the year ended March 31, 2006, the company has reported a net profit of Rs 80.55 crore on net sales of Rs 775.67 crore. During the corresponding period of the previous year, the company reported a net profit of Rs 37.95 crore on net sales turnover of Rs 641.05 crore.

The TNPL board has recommended a total dividend of Rs 3 (30 per cent) on a share of Rs 10. This follows a 15 per cent final dividend declared in addition to the interim dividend paid earlier.

Contributing factors

The company has attributed the performance to buoyant paper prices, increased production and 100 per cent capacity utilisation, cost conservation and additional revenue generated through sales of carbon emission reduction (CER) credits. Power generation and surplus export to the State grid have also contributed to the revenues.

TNPL's production during 2005-06 was more than 2.30 lakh tonnes against the previous year's 1.96 lakh tonnes, sources said. Less than 2 per cent of the production was newsprint, which offers lower margins, and the focus was on printing and writing paper. It also exported 38,645 tonnes of printing and writing paper.

The company has exported power generated from its 28 MW wind farm entirely to the Tamil Nadu Electricity Board's grid. TNPL has also generated surplus power from the captive power plant, they said.

Positive outlook

Officials were optimistic on the outlook for the coming year.

TNPL has taken advantage of the Clean Development Mechanism (CDM) and is cashing in on its bio-methanation project. This is the first CDM project implemented in the paper industry that will generate about 37,000 CERs a year. Each CER is valued at about 10 and TNPL has about 82,955 CERs to its credit as of December 2005. TNPL's revenue from CDM was about Rs 5 crore, according to sources.

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Buoyant paper prices boost TNPL